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Walmart [WMT] to Manufacturers: Invest in the Brand! (Ours Not Yours)

|Includes: Walmart Inc. (WMT)

For years Walmart and other mass merchandisers relied on manufacturers of branded products to use their ad dollars to deliver consumers to their doorstep.  Traditionally manufacturers need a convincing story about their advertising and media commitment just to gain entry to the shelf.  Then once on the shelf brands that don't sell through are at risk of removal, or destocking.   Walmart and others, parlay the investment made by suppliers to switch shoppers once in the aisle to higher margin store brands thus creating a leveraged play on the underlying brand's investment while improving their margin mix.  Sixty percent of purchase decisions are made in the aisle according to Miller Zell, [2009].  Recently traditional promotional tactics such as price roll backs, have increased intensively at Walmart which together with recent accounting changes have confounded manufacturers' top-line sales and gross margins...  read the full story at: